Vareto Finance Glossary

Contracted Monthly Recurring Revenue (CMRR)

Definition

Contracted or Committed Monthly Recurring Revenue (CMRR) is a SaaS metric that considers the total monthly recurring revenue (MRR) via new bookings, churn, and downgrades/upgrades. CMRR also considers fees such as one-time installations.

Example

CMRR = MRR + New Bookings + Churn + Downgrades + Upgrades

Why it matters

Businesses can use this metric to get a true estimate of their income. Most banks prefer to look at this metric while issuing credit. Also, investors and stakeholders may use this metric to check business progress.